Partnership. {Ch. 31. No. 2.

 

 

9. Where one partner pledges the credit of the firm for a
purpose apparently not connected with the firm’s ordinary
course of business, the firm is not bound, unless he is in fact
specially authorised by the other partners; but this section
docs not affect any personal liability incurred by an
individual partner.

10. If it has been agreed between the partners that any
restriction shall be placed on the power of any one or more
of them to bind the firm, no act done in contravention of
the agreement is binding on the firm with respect to persons
having notice of the agreement.

M1. Ievery partner in a firm ts liable jointly with the
other partners for all debts and obligations of the firm
incurred while he is a partner; and after his death his
estate is also severally liable in a due course of adminis-
tration for such debts and obligations, so far as they remain
unsatisfied, but subject to the prior payment of his separate
debts.

12. Where, by any wrongful act or omission of any
partner acting in the ordinary course of the business of the
firm, or with the authority of his co-partners, loss or injury
is caused to any person not being a partner in the firm,
or any penalty is incurred, the firm 1s liable therefor to
the same extent as the partner acting or omitting to
act.

13. In the following cases, namely

(a) where one partner, acting within the scope of his
apparent authority, receives the money or property
of a third person, and misapplies it, and

(0) where a firm in the course of its business receives
money or property of a third person, and the money
or property so received is misapplied by one or morc of
the partners while it is in the custody of the firm,

the firm is liable to make good the loss,

14. Every partner is liable jointly with his co-partners
and also severally for everything for which the firm, while
he is a partner therein, becomes liable under either of the
two last preceding sections.

729

Vartners
using credit
of firm for
private
purposes.

Hifect of
notice that
firm will not
be bound by
acts of
partner

Liability of
partners.

Liability of
the firm for
wrongs of
partners.

Misapplica-
tion of
money or
property
teceived for
or in
custody of
the firm.

Liability for
wrongs joint
and several.